Correlation Between ASML Holding and HDFC Mutual

Can any of the company-specific risk be diversified away by investing in both ASML Holding and HDFC Mutual at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ASML Holding and HDFC Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ASML Holding NV and HDFC Mutual Fund, you can compare the effects of market volatilities on ASML Holding and HDFC Mutual and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ASML Holding with a short position of HDFC Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and HDFC Mutual.

Diversification Opportunities for ASML Holding and HDFC Mutual

0.0

Correlation Coefficient

ASML Holding  HDFC Mutual

Pay attention - limited upside

The 3 months correlation between ASML and HDFC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and HDFC Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HDFC Mutual Fund and ASML Holding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ASML Holding NV are associated (or correlated) with HDFC Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HDFC Mutual Fund has no effect on the direction of ASML Holding i.e., ASML Holding and HDFC Mutual go up and down completely randomly.

Pair Corralation between ASML Holding and HDFC Mutual

If you would invest  75,210  in ASML Holding NV on September 4, 2025 and sell it today you would earn a total of  35,668  from holding ASML Holding NV or generate 47.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ASML Holding NV  vs.  HDFC Mutual Fund

ASML Holding NV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ASML Holding NV are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile primary indicators, ASML Holding disclosed solid returns over the last few months and may actually be approaching a breakup point.

HDFC Mutual Fund

Risk-Adjusted Performance

Weakest

Over the last 90 days HDFC Mutual Fund has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, HDFC Mutual is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ASML Holding and HDFC Mutual

The main advantage of trading using opposite ASML Holding and HDFC Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, HDFC Mutual can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HDFC Mutual will offset losses from the drop in HDFC Mutual's long position.

The idea behind ASML Holding NV and HDFC Mutual Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.